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drift is lying on the schist formation, as they expect, if they can get this, that there is a good probability of finding a rich layer of this material. This work can be done in winter when the frost will not admit of mining operations being undertaken on the surface; but unless the ground is rich enough to drive out, or work in by paddocking, there is no chance of getting a large supply of water at this elevation to work a number of claims. Similar material to that where the gold is found in the face of the range was obtained in Eobertson Brothers' claim on the flat, and from which a considerable quantity of gold was obtained. It is said by the miners here that the value of the gold that was produced from the claims on the same run of ground as Eobertson Brothers were working amounted to £40,000. Very rich ground was found in Cardrona Mat in the early days, and it was traced down into deep ground some distance below the township, where there was a considerable quantity of water to contend with, and here the lead was lost. No one has been able to find it since, but many of the old residents are still in hopes of being able to pick it up again. The value of the gold got in the Cardrona Valley and on the side of the range out of the lead of auriferous quartz gravel-wash referred to is much higher than the value of the gold got out of the branch creek about four miles below the township, and also on the top of the range at Mount Criffel. At the Mount Criffel Diggings there are only a few men at work. All the water is held by Halliday and party, who may be said to hold the key to the whole of the ground, and are therefore able to get good returns for the short season they are able to work. Notwithstanding that Cardrona is one of the oldest fields in this locality, having been opened at the time of the rush to the Arrow and Shotover Eivers, there are still about ninety-five Europeans and fifteen Chinese earning their livelihood in this district, although they cannot be said to be earning large wages. The approximate quantity of gold obtained last season is said to be about l,ooooz. Arrowtown. The alluvial workings in the vicinity of the Arrow are greatly scattered about. There are still a few parties of men working in the face of the range leading up to the Crown Terrace, on the agricultural lease which was resumed from Mr. Baker, and a party is working in the bed of the Arrow Eiver underneath this terrace. Very little gold was ever found in the present bed of the Arrow Eiver underneath the place where the gold is being got in the face of the terrace. Judging from the surface features of the ground in this locality, the Arrow Eiver has at one time flowed much nearer the foot of the Crown Terrace than it now does, and that a large slip from the front of the terrace, which is nearly I,oooft. higher than the level of the bed of the river, has taken place, and filled up the original channel, turning the river into the place where it now flows. This is the opinion also of some of the miners in this neighbourhood, and, should it prove to be the case, there is a probability of a rich lead of gold being found in the old river-bed; but it will require considerable capital to prove this theory, on account of the ground being wet, as it would require to be either driven out or else a tail-race constructed for a distance of about two miles to bring up fall to ground-sluice the whole of the material. The latter scheme was submitted to the Hon. the Minister of Mines when last in the district, as one for which Government aid was required. The scheme, however, is more for the benefit of the party who undertakes it, as only one party could work it at the same time, and no public benefit would result from the undertaking beyond that which a few interested individuals would receive. Eich gold-bearing deposits were found in the bed of the Arrow Eiver at the back of the township in the early days. It was at this place where the gold was first found. The gold was traced into deep ground going towards the mouth of Bush Creek, which is the opposite direction to that which the river now flows on leaving the mouth of the gorge. Several attempts have been made to sink shafts here, but, so far, the water has been too much to contend with. The deep ground indicates that the Arrow Eiver flowed in an entirely different direction to what it now does, and probably an ancient river-bed will yet be found going through the flat into Hayes' Lake. It is from this point where levels should be taken to get a drainage tail-race if ever any scheme is got up to work the flat at the upper end of the township, and, if the course of the river could be traced into this flat, there would be a great probability of a good deal of rich ground being opened up. Alluvial drifts are found almost anywhere on the terraces of the Arrow Eiver all the way up to Macetown; they would pay for working were there water to be got. Several parties here are making their livelihood in working the ground on these high terraces with small quantities of water conserved in dams until there is a sufficient quantity to use for a few hours now and again in sluicing these drifts. At Bracken's Gully some are yet doing well, and the claim opened up by Eeid and McDougall, on the terrace between Canoe Creek and Macetown, shows that there is a good deal of gold to be got in this locality. Eeid and McDougall's claim has a depth of from 60ft. to 80ft. of gravel containing a little gold through it, but the best layer is near the bottom. They have been working here for the last four years, and have been averaging between £3 and £4 per week wages since they commenced working. They have a water-race on the range on the opposite side of the Arrow Eiver, and bring the water across the valley in a wrought-iron siphon, the pipes being 7in. in diameter ; this delivers the water into a dam on the terrace where they are at work, and gives them about 80ft. of head on the sluicing-nozzle. The sluicing operations are only carried on when the dam is full of water, when they use about ten or twelve sluice-heads until the dam is empty, and then allow it to fill before commencing to use the water again. There are similar terraces to that on which Eeid and McDougall are working between this and Arrowtown, on the same side of the river. At the Arrow Falls, Miller Brothers are working in the bed of the Arrow Eiver, and sluicing the whole of the material in the river-bed through the tunnel which was constructed by the MoodyDavis Syndicate and purchased by the present owners to work this property. The ground has not yet yielded the return that was anticipated; however, it may be said that only a fair commence-